MiraMed Counts Down to Operation Sequestration

February 27, 2013 04:06 PM Eastern Standard Time

JACKSON, Mich.--(BUSINESS WIRE)--MiraMed, Global Services, Inc. (MiraMed) knows Friday, March 1, marks
the day in which across-the-board spending cuts (to the tune of $85
billion) take effect. Regardless of one’s political position and
opinion, it is undeniable that the impact on healthcare will be great,
especially in the employment sector of the industry as well as with
Medicare.

While the cuts to the Food and Drug Administration, National Institutes
of Health and grant money for Health Insurance Exchanges are certainly
great and will be felt across the board, one of the key impacts will be
to employment. A report released last year by the American Hospital
Association, the American Nurses Association and the American Medical
Association, The Negative Employment Impacts of the Medicare Cuts in
the Budget Control Act of 2011 (Report), explores the impact the
sequester will have on employment in the healthcare industry.

[D]uring the first year of this sequester, more than 496,000 jobs
will be lost. This includes those workers directly employed by the
health care sector, as well as other jobs supported by the purchases
of health care organizations and their employees (the so-called
“multiplier effect”). This number will swell to 766,000 fewer jobs
by 2021. These job losses will affect many economic sectors beyond
health care, and will be spread across every state with more than
78,000 jobs lost in California alone by 2021.

According to the Report, hospitals will feel the most impact of the
decreased employment in the healthcare sector.

Another significant matter is Medicare cuts. There are concerns over how
the 2% cuts will be put into place. There are discussions regarding
cutting 2% from everybody equally—physicians, hospitals, etc., but many
worry that this method will not be effective and, thus, some sectors
(e.g., hospitals) may have to prepare for more.

As the country watches March 1 quickly approach, if Congress takes no
action, the healthcare industry is bracing itself for immense and
intense cuts, both financially and in its workforce. While many details
remain unknown, what we can predict is that the effects of the sequester
could change the direction of healthcare for years to come.